Marine Diesel Engine Repower Criteria and Requirements

Existing Engine(s):

  1. Vessels must be based in Santa Barbara County;
  2. Vessels must operate 50% of the time in coastal waters of Santa Barbara, San Luis Obispo, and/or Ventura counties with the remainder in California coastal waters;
  3. Vessels are required to maintain a functioning hour meter as required by the Commercial Harbor Craft Regulation.
  4. Funding opportunities may be limited for vessels subject to the Commercial Harbor Craft Regulation including: Commercial passenger fishing vessels, Commercial fishing vessels, Pilot vessels, Barges, Dredge vessels, Work boats, Research vessels, Ferries, Excursion vessels, Tug boats, Tow boats, Push boats, Crewboats, and Supply boats;
  5. Only engines in marine vessels with a U.S. Coast Guard Documentation Number, IMO/Lloyd’s Number, or California vessel registration (CF) number are eligible and identification must be included with the application;
  6. Existing engine(s) proposed for repower must be operable and in-service at the time of application and operation must be demonstrated during a District pre-inspection;
  7. Existing engine(s) must be destroyed by a District approved salvage yard;
  8. Funding is not available for projects where spark-ignition engines are replaced with diesel engines. Repowering a diesel engine to a spark-ignited engine may be considered on a case-by-case basis;
  9. Existing engine must be equal to or greater than 25 horsepower.

Replacement Engine(s):

  1. Vessels must be based in Santa Barbara County.
  2. Vessels must operate 50% of the time in coastal waters of Santa Barbara, San Luis Obispo, and/or Ventura counties with the remainder in California coastal waters.
  3. Vessels are required to maintain a functioning hour meter as required by the Commercial Harbor Craft Regulation.
  4. Engine(s) purchased prior to execution of a grant agreement will be ineligible for funds.
  5. Repower project must be completed prior to the Commercial Harbor Craft Regulation in-use compliance deadline;
  6. Repower installation and engine rebuild work may be conducted by the original equipment manufacturer (OEM) or a non-OEM installer. Engine repower installation must be completed in a manner that does not void the warranty provided by the engine manufacturer and any remaining warranty provided by the engine manufacturer. Proof of warranty will be required as a condition of grant payment;
  7. Emission reductions obtained through the project must not be required by any federal, state or local regulation, memorandum of agreement/understanding with a regulatory agency, settlement agreement, mitigation requirement, or other legal mandate;
  8. No emission reductions generated shall be used as marketable emission reduction credits, or to offset any emission reduction obligation of any person or entity.
  9. No funded project shall be used for credit under any federal or state emission averaging banking and trading program.
  10. Projects must meet a cost-effectiveness threshold in accordance with the cost-effectiveness methodology included in the 2017 Carl Moyer Program Guidelines.

Application Statement of Terms and Conditions:

  1. Projects approved for funding are required to use our Standard Grant Agreement template which is available on our website:
  2. I have legal authority to apply for grant funds for the entity described in this application.
  3. The proposed project is not required to be implemented by any local, state, and/or federal rule, regulation, or other legally binding requirement.
  4. No replacement engine(s) has been purchased and no work on this project has begun or will begin until the Grant Agreement is fully executed by the District Board of Directors or by the Air Pollution Control Officer.
  5. I understand the grant will reimburse a portion of the total costs and I must retain copies of receipts and cancelled checks to prove that I paid for the total project cost before receiving reimbursement.
  6. I understand there are conditions placed on receiving a grant and agree to refund the grant (or a pro-rated portion) if it is found that at any time I do not meet those conditions.
  7. I understand I must complete the engine(s) purchase specified in the application no later than the period of performance stated in the Grant Agreement. This deadline may be extended for cause if requested by the applicant and approved in writing by the District.
  8. I understand it is my responsibility to ensure that all technologies are either verified or certified by the California Air Resources Board (CARB) to reduce NOx, and/or PM pollutants.
  9. I have attached records, fuel receipts, logs, and/or operating hour documentation that validates the historic operation of the baseline engine(s) for at least the previous 24 months.
  10. I understand any existing engine and engine(s) which has been replaced must be permanently destroyed and rendered inoperable.  This work shall be documented by the District.
  11. I understand that the existing engine may not be removed from the engine(s) until the manufacturers permanently marked serial number is documented by District inspection or a District tamperproof tag is affixed to the engine that ensures the engine’s identity can be verified after removal.
  12. I understand that both the existing engine operates and the new engine/motor will operate 100% of the time within Santa Barbara County.
  13. I understand that I must submit usage reports annually to the District for the life of the project.
  14. I understand I will be prohibited from applying for any form of emission reduction credits for this Moyer funded equipment/engines including: Emission Reduction Credit (ERC), Mobile Source Emission Reduction Credit (MSERC), and/or Certificate of Advanced Placement (CAP), for all time, from the District, CARB, and/or any other district.
  15. I certify that the proposed project has not been funded and is not being considered for any funds by another air district or any other public agency.
  16. I understand that disclosure is required of the value of any current financial incentive that directly reduces the project price, including tax credits or deductions, grants, or other public financial assistance.
  17. I understand that a Global Positioning System (GPS) unit may be required to be installed on vessels and vehicles/engine(s) if the District ascertains during the application process that the grant engine(s) has the potential of operating outside of the boundaries of Santa Barbara County for a significant portion of the project life. I will submit data as requested and otherwise cooperate with all data monitoring and reporting requirements.
  18. I understand that a tamperproof non-resettable digital hour meter/odometer must be installed and maintained in operating condition on all vehicles/engine(s).
  19. I understand the District has the right to conduct unannounced inspections to ensure the project engine(s) is fully operational and at the activity level committed to in the grant agreement.
  20. I certify that the requested funds do not include administrative costs. Administrative costs are defined as costs related to application preparation and submittal, project administration, monitoring, oversight, data gathering, and report preparation. I will include funds necessary to cover administrative costs and any required matching funds in my budget for the duration of the project.
  21. I understand that an IRS Form 1099 will be issued to me for the incentive funds received. I understand that it is my responsibility to determine the tax liability associated with participating in the 2020 Clean Air Grants Program.
  22. I have signed and submitted to the District a CARB Regulatory Compliance Statement certifying that my company is or I am in compliance with all federal, state, and local air quality rules and regulations at the time of application submittal.
  23. Agreement to Conduct the Transaction Electronically. Counterparts may be executed and delivered via facsimile, electronic mail (including pdf, digital signature, or any electronic signature complying with the U.S federal ESIGN Act of 2000, California’s Uniform Electronic Transactions Act (Cal. Civ. Code 1633.1, et seq.) or other applicable law) or other transmission method, and any counterparts so delivered shall be deemed to have been duly and validity delivered and be valid and effective for all purposes.

Criteria and requirements based off of California Air Resources Board’s 2017 Carl Moyer Guidelines, Chapter 7: Marine Vessels.

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